Our approach to ESG
Our commitment to our clients is to consider the bigger picture when it comes environmental, social and governance (ESG) investing. We resist a formulaic or tick-box approach, and ensure that ESG considerations are fully integrated into our investment process and applied in line with our 3M philosophy.
We believe businesses must be sustainable to thrive and deliver shareholder value in the long term. Therefore, we do not believe ESG investing should be a simplistic, add-on or stand-alone process. Moreover, ESG is not just about the now, but also about the future. Part of our process is to engage with companies to ensure they improve their overall ESG record. As a result, not only do we invest in companies with good ESG track records, but we will also consider investment in companies that show a clear commitment to future improvement. After all, sometimes the biggest win for society is in helping perceived laggards make the transition to delivering on more sustainable outcomes. Importantly, we view ESG considerations holistically. ESG should not just about the E (environment). Social and governance factors require due consideration.
While our choices can sometimes appear counterintuitive at first glance, we believe our bigger picture perspective and longer-term approach can help to achieve more considered ESG outcomes, while also rewarding our investors in the long run.
More insights into our ESG Approach
Our annual Stewardship Report highlights our thinking on
ESG-related matters, and details new developments during the latest reporting period.
Our voting record
We aim to exercise our proxy voting responsibilities in an accountable and transparent manner. We report on our proxy voting decisions annually.
Other documents
Statement on the Code for Responsible Investing in South Africa (CRISA)
Case studies
How we weigh environmental factors (Exxaro)
Exxaro is the lowest-cost supplier to Eskom, providing coal directly to power stations via conveyor belts and accounting for more than 25% of the coal-generated electricity generated by the state-owned enterprise. As such, they play a critical role in enabling Eskom to continue providing power to South Africa.
How we weigh social factors (Afrimat)
Afrimat is a mid-tier mining and materials supply company that operates across all nine provinces in South Africa. Given their presence in the mining, construction and quarry sectors, social risks have the potential to affect Afrimat operationally and financially.
How we weigh governance factors (JSE)
This case study shows how we actively use proxy voting as part of integrated ESG process, and highlights that governance factors naturally weigh heavily as part of our 3M investment philosophy.
A differentiated perspective - choosing not to invest because of overlooked ESG factors (Nedbank)
Our integrated ESG process will sometimes lead us to reject investment in counters, even where these form part of popular indices.
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